The UK Commercial Property Trust will face a shareholder vote in November to decide whether it will continue to operate.
In an announcement to the Stock Exchange this morning, the trust said it had to call an extraordinary meeting because it had been trading at a discount of more than 5% of net asset value for more than 90 consecutive days. However, the vote is unlikely to succeed because Resolution Asset Management, which manages the trust, owns just under 75% of the shares.
The situation mirrors recent events at F&C, where the F&C Commercial Property Trust has a similar clause in its prospectus.At its continuation EGM in September, 95% of F&C Commercial Property Trust shareholders voted to continue the trust. Last week, UK Commercial said that the value of its direct property portfolio fell by 3.15% over the quarter to 30 September, and it expects to announce a 3.5% drop in NAV.